Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1887-11-03
CORRUPTION.
E. II. Nichols Before the Pacific Rail-
way Commission.
Showing How Things are DOne-Inter-
esting Testimony.

Showing How Things are DOne-Inter-
esting Testimony.
At late meeting of the Pacific Rail-
way Commission, at New York, Efingham
81. Nichols, formerly treasurer of the
central branch of the Central Pacific rail-
way. then known as the Atchison and
Pixies Peak railway, was the first witness
He detailed the organization and the
construction of the first one hundred
miles of the Atchison and Pixies Peak
railroad. He said he considered that the
road had a perfect right to consolidate
with another road, and that its grants of
land should go to the road into which it
was merged. The witness then explained
the difficulties they had experienced in
trying to fulfil the government require
ments, and had finally found it impossible
to fully carry out the road. Only one
tenth of the lands which were to be
granted to them by the government came
to them.
Commissioner Anderson remarked that
it seemed impossible that road intend
ed to run only 100 miles should be al
lowed to consolidate and run to the Paci-
fc. The witness replied that a statute
permitted the consolidation. In the con-
solidation with the Atchison, Colorado
and Pacific among the controlling pow
ers were Oliver Ames, r. M. Pomeroy,
Erastus Corning, Henry Willard, William
G. Wetmore, John A. Stewart, Governor
William Clafin, and A. S. Barnes. The
read employed among many others,
Thomas A. Hendricks and Beverly John
son, but not when they were in Office.
Before the reorganization, when he came
in, 400 first mortgage bonds were issued
to those previously in power, but he has
never been able to find the reason for it.
But this
OBLIGATION WAS MADE CONDITIONAL
when he and hio friends went into the
company. Witness never received any
of the 400 bonds. The books of the con-
struction of the road known as the Os-
borne books were lost. Thomas M. 10th
er attended to the disbursements. No
other money, save the bonds, the witness
said, was disbursed, except for compensa
ton.
Witness said that no bond nor dollar
was distributed except for return, but
bonds were issued in consideration of
loans. If $4,000 or $4,000 was put in
to the company for three or four months
a bond would be given in addition to the
interest. About seventy five bonds were
SO issued, Then there were bonds for
what we're known as "existing obliga
tions," which were not defined. Witness
got four of the bonds, as shown by the
books. Governor Ames kept a record of
the roads transactions in note book.
Between 1870 and 1878 the road was in a
bad way. In 1879 the first mortgage
bonds had to be funded. When witness
and his friends resolved to run the road
through to Denver, Jay Gould stepped in
and payed $3.50 per share for stock that
was, according to the witness, of little
value. Mr.. Nichols said he believed that
Mr.. Gould got his information as to the
roads intention from one Joe Richard
son, who was flung out of different offices
on the road. After the sale was made,
witness, who conducted it, was paid $685.
900 for legal services. When he went to
Washington in 1868 to see about the bill
for the relief of the Central Branch, Mr..
Nichols interviewed the Congressman.
No money was given to congressman, but
some was expended in dinners for them
at the Arlington. These were given for
the
PURPOSE OF GETTING ACQUAINTED
with the members and talking about the
bill. Between January and July, 1870,
1913, AL was expended for such incidental
expenses. William M. EvaIts was paid
fee of $4,000. Two items of $1,000 which
were charged against him, Mr.. Nichols
said, were probably for some political
operations of Mr.. Pomeroy. mr.. Nichols
said that any inference from the books
of the Central branch to the effect that he
had not paid full value for all the stock
issued to him was incorrect. He had paid
first at the rate of $50 per share, and af-
forwards $40 share. The books show
ing that for 1,616 shares of stock issued
at one time, and 1919 shares at another he
had only paid $62,100 to the com pany
could not be right. He believes he had
9O1 shares of his own and 101 shares of
his fathers estate, part of which he
transferred to Oliver Ames.
Mr.. Nichols said that he paid at the
rate of 800 per share on such stock as
he received. The books upon which the
accountants of the commission had based
their figures must be wrong. He could
not understand why the books did not
show any payment by him for 1919 shares
at one time, nor could he explain why he
should pay its par value for stock about
January, 1879, when Gould was about to
buy in the stock at $3.50, and while the
stock was selling as low as so cents on
the dollar.
Commissioner Anders IN astonished the
witness by asking him what had become
of $131,0 charged against him on the
books. Witness thought it must have
been for counsel fees, dinners for Con-
gressmen, and Incidental expenses.
Witness thought the Central branch
was yet entitled to the government
lands 100 miles beyond the western ter
minus of the road. He did not believe
the fact that they had not carried their
road that distance made any difference.
They had filed their maps and were ex-
onerated from continuance of the road.
Mr.. Nichols believed the government
should wipe out the accumulation of in
terests on all it's claims against the Paci-
fc railroads, as they have all benefited the
public to a greater extent. They could